VanEck, a prominent digital asset manager, has introduced staking options for its Solana exchange-traded note (ETN) in the European market. This development, announced by Matthew Sigel, Head of Digital Assets Research at VanEck, allows investors to earn passive rewards from their VSOL holdings without the need for active management.
Benefits of Staking with VanEck’s Solana ETN
- Automatic Rewards: Staking rewards will be accrued and re-invested daily, reflecting in the product’s daily net asset value (NAV).
- Simplified Process: Investors can benefit from the staking feature without having to manage the process themselves.
- Enhanced Returns: Staking rewards can potentially boost the overall returns on VSOL investments.
- Security and Liquidity: VanEck’s VSOL custodian manages the staking exposure to ensure the safety of funds and maintain daily liquidity.
About VanEck’s Solana ETN
Incorporated in Liechtenstein, VSOL is a crypto exchange-traded product fully collateralized and stored with a regulated crypto custodian. It began trading in September 2021 on Deutsche Börse, Europe’s leading stock exchange. As of October 18, 2024, VSOL’s total assets under management (AUM) stood at $73.8 million, with a share price of €8.229 ($8.93).
Staking Features and Rewards
The staking process for VSOL is managed by VanEck’s VSOL custodian, ensuring the safety of the staked SOL tokens. Staking rewards are included in VSOL’s coin entitlement and distributed equally to all investors. However, VanEck deducts a staking fee of 25% before distributing the rewards. The rewards are then added to VSOL’s end-of-day NAV by 4 p.m. CET.
Also Read: VanEck Slashes Ethereum (ETH) 2030 Price Target By 67% To $7.3K Amid Layer 2 Woes
VanEck’s Expanding Crypto Offerings
VanEck is a leading digital asset manager with a global presence. In the United States, the company offers exchange-traded funds (ETFs) tied to Bitcoin and Ethereum. VanEck is also actively pursuing a Solana ETF in the U.S., but its application is still pending approval from the Securities and Exchange Commission (SEC).
VanEck’s introduction of staking for its Solana ETN in Europe provides investors with an opportunity to earn passive rewards from their VSOL holdings. This development aligns with VanEck’s commitment to offering innovative digital asset products and expanding its presence in the cryptocurrency market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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